Carillon Tower Advisers, an investment management company, released its fourth-quarter 2025 investor letter for the “Carillon Scout Mid Cap Fund”. A copy of the letter can be downloaded here. Major U.S. equity indices delivered positive returns in the fourth quarter, while the Russell Midcap® Index return lagged with nominal positive gains. Strong corporate earnings revisions and lower short-term interest rates supported U.S. market returns. Investors’ focus on an optimistic 2026, and consensus outperformed the market amid long-term government shutdowns. High sector return dispersion was observed in the Russell Midcap Index, with healthcare, materials, and IT leading. However, investors’ bias towards higher beta and more cyclical stocks led Communication services, real estate, and utilities to lag in the quarter. The fund expects the Midcap equities to trade higher in 2026, supported by broader market involvement, though this view aligns with consensus. U.S. market index earnings are projected to grow significantly in 2026 despite price-to-earnings ratios being higher than historical averages. Please review the Fund’s top five holdings to gain insights into their key selections for 2025.
In its fourth-quarter 2025 investor letter, Carillon Scout Mid Cap Fund highlighted Clearwater Analytics Holdings, Inc. (NYSE:CWAN) as one of its leading contributors. Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is a Software-as-a-Service solution company for accounting and reporting. On March 20, 2026, Clearwater Analytics Holdings, Inc. (NYSE:CWAN) stock closed at $23.44 per share. Clearwater Analytics Holdings, Inc. (NYSE:CWAN) delivered a 1.30% return in the past month, and its shares lost 13.41% over the past twelve months. Clearwater Analytics Holdings, Inc. (NYSE:CWAN) has a market capitalization of $7.01 billion.
Carillon Scout Mid Cap Fund stated the following regarding Clearwater Analytics Holdings, Inc. (NYSE:CWAN) in its fourth quarter 2025 investor letter:
“Clearwater Analytics Holdings, Inc. (NYSE:CWAN) develops cloud-native software that supports investment accounting operations. The company received a buyout offer from a private equity firm, which is expected to close by mid 2026. The offer included a “go shop” clause that allows the company to seek a better offer through late January. We believe the offer undervalues Clearwater, though extremely negative application software sentiment may keep a better offer from emerging.”
Clearwater Analytics Holdings, Inc. (NYSE:CWAN) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 59 hedge fund portfolios held Clearwater Analytics Holdings, Inc. (NYSE:CWAN) at the end of the fourth quarter, up from 33 in the previous quarter. While we acknowledge the risk and potential of Clearwater Analytics Holdings, Inc. (NYSE:CWAN) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than Clearwater Analytics Holdings, Inc. (NYSE:CWAN) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered Clearwater Analytics Holdings, Inc. (NYSE:CWAN) and shared Conestoga Capital Advisors’ views on the company. In addition, please check out our hedge fund investor letters Q4 2025 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
